The Competition Commission of India (CCI) approved the acquisition of the standard unsecured personal loans portfolio of Standard Chartered Bank, India Branch, by Kotak Mahindra Bank Limited on Tuesday. In October, Kotak Mahindra Bank Limited announced that it had entered into an agreement to acquire the Personal Loan book of Standard Chartered Bank, India.
Effective September 30, 2024, the Proposed Transaction includes a total loan outstanding amounting to approximately Rs 4,100 crore (~$490 million). These loans are categorized as “Standard Loans” in accordance with the guidelines provided by the Reserve Bank of India (RBI).
The transaction is anticipated to finalize within the next three months, contingent upon obtaining regulatory approvals, meeting other necessary conditions, and obtaining approval or waiver of customary closing requirements. KMBL is set to take over the loan portfolio, which will still be outstanding by the time of completion.
“This acquisition aligns with KMBL’s strategy to transform for scale and focus on customer-centric growth. The high-quality loan book from Standard Chartered Bank allows KMBL to build on its strength in the affluent customer segment and further reinforces its leadership in the retail lending space,” the company had said in its official release.
In the most recent years, this is the second notable transaction between a private sector bank and a foreign bank. In 2022, Axis Bank, the third-largest private lender in India, successfully acquired Citi India’s consumer and wealth management business.
Kotak Mahindra Bank’s latest acquisition marks a significant milestone under the leadership of Ashok Vaswani. As the managing director and chief executive officer since early 2024, Vaswani has overseen the bank’s strategy to expand its operations and emphasize customer-centric growth. This acquisition is a reflection of the bank’s larger objectives and strategic direction.
As of June 30, consumer loans comprised 45% of KMBL’s total loan book, amounting to Rs 1.83 lakh crore. Among these, personal loans, unsecured business loans (for non-personal use), and consumer durables loans totaled Rs 20,317 crore, showing a 1% year-on-year increase.
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